3 reasons that make crowdfunding a great way of investment in the real estate

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Considering the economic play and its impact on the real estate prices, the sky reaching prices serve as a de- motivator for most of the small investors. But this should soon be history with the emergence of the crowdfunding as the means of financing. It very much is perceived as a relief for the small players who want to invest in certain real estate properties but are unable to do so for the highly priced deals. Besides the size of the investments, there also is inherent risk in terms of a sudden crisis or slow demand conditions. In such cases, if small investors risk their substantial amounts, then the loss can be terrible.

Here are 3 reasons of how crowdfunding comes at the rescue of such small investors who are keen to have real estate investments:

  1. Investments can be made in a single real estate property

Unlike the conventional real estate equities and investments in other forms, the crowdfunding means allows the users to invest in a single property in which they are interested to invest in. This comes as a relief for the investors are aware of the kind of property they are planning to invest in. So, it is not the intermediary trust factor or a brand they are investing in, but a particular project or real estate property.

  1. Affordable to the small investors

This is the most important reason why the slow shift to crowdfunding based equity in real estate is on the charts. Affordability is one factor that the investors would want to be sure about along with the returns. In case of real estate, the returns are high when the market conditions are good and indicative of an uptrend in the real estate prices. But being a huge amount, a sole novice investor might not be able to get along with the investments entirely. In such cases, crowdfunding is the best idea. The equity factor ensures the share of the investor in the given property.

  1. Easy and transparent system of funding in real estate

Most of the times, the amounts invested in the real estate is basically pooled together from various investors (in the form of shares or loans) and invested across multiple properties by the contractor or the builder. However, in case of crowdfunding, there is utmost transparency in the type of investments, number of properties chosen for investment, the purpose of investment, the progress in the plan, etc. This boosts up the novice investors. Moreover, crowdfunding is online and easy for them to access.

Real estate is one sector that involves a lot of money as investment. Generally investors have been investing jointly from commercial point of view through the real estate equity. Crowdfunding is one such platform where the investors can come together and invest in big projects with their small yet important investment amounts. So if you had been wandering around for a good real estate investment option, do experience crowdfunding!


Crowdfunders Editorial Team from Crowdfunders.Asia has written this article. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets.com is based in South East Asia and is the first real estate crowdfunding site. You may reach us at [email protected]     if you wish to contribute your story.

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